Klarna Expands European Card Network With Marqeta’s Platform

Klarna is expanding its card offering in Europe with the help of card issuing platform Marqeta.

The partnership is designed to bring the Klarna Card into 15 new European markets, according to a Monday (Nov. 3) press release. The launch builds on the two companies’ long-term partnership and employs Visa’s Flexible Credential (VFC) technology, letting cardholders choose between paying now or later.

“At Klarna, we believe everyday spending should be simple, flexible and fair,” Klarna Chief Marketing Officer David Sandström said in the release. “Together with Marqeta and Visa, we’re redefining how people pay across Europe, combining the simplicity of debit with the power of pay-later options in one seamless experience. The Klarna Card gives consumers a smarter, more transparent way to manage their money, on their terms.”

The expansion follows the United States launch of the Klarna Card in July. Marqeta last year became the first issuer processor in the U.S. certified for the Visa Flexible Credential.

The Klarna Card is now rolling out in the United Kingdom, Denmark, Germany, Norway and Poland, the release said. In addition to the U.S., it is already available in Austria, Belgium, Finland, France, Ireland, Italy, the Netherlands, Portugal, Spain and Sweden.

In other news from the pay-later sector, PYMNTS CEO Karen Webster wrote last month about the proliferation of “doomsday” news articles about buy now, pay later (BNPL) services trapping consumers into a spiral of debt.

“These stories make compelling reading and encourage viral posts and social piling on,” Webster wrote. “They also fundamentally misrepresent how virtually everyone actually uses these products.”

The PYMNTS Intelligence report “Split Shift: How Card Installments Are Reshaping the Pay Later Landscape” found that between 97% and 98% of BNPL users can responsibly manage their obligations.

Delinquency rates remain low, according to data from the Federal Reserve as well as public disclosures from BNPL providers themselves. Installment products offered by “pureplay” providers and enablers, along with credit card issuers, can provide valuable budgeting tools for those who use them, Webster wrote.